I agree with pretty much everything Swampboy said on the first page.
There are other scenarios in which teams are put together on a basis that is not in-line with the "generally accepted" morality of the scenario. When I was in high school, I played a little bit for a team that was created and run by a former poster on this website. That team charged quite a lot of money for every event they attended and had a continually revolving roster. My issue was not the turnover, or the competition, but the fact that the roster was often so big. There were many instances when this person would bring in players (sometimes off of this website) and they, too, would sit the bench through a tournament, while writing the check to play.
If players are brought in under previously-communicated guidelines and for the betterment of both the program and the players involved, I don't have an issue with it - much like Swampboy illustrated. If players are brought in for the purpose of padding the pockets of the organization - without providing development or exposure to anyone on the team ("ringers" included), then that is a separate conversation. From my understanding, the issues discussed in the OP are different than those I experienced with the former poster from this website, and that leads me to agree with Swampboy's well-put sentiment.